Understanding the High Cognitive Poor Phenomenon Among Chinese in Europe

In my years abroad, I’ve come to realize a striking phenomenon among the Chinese community in Europe, especially among international students who stay on after graduation to work. This group often becomes what I like to call “high cognitive poor.” But what does that mean?

The Paradox of Education and Financial Realities

Many individuals in this category possess impressive academic credentials and are equipped with essential skills. They find employment in reputable companies and bask in the aura of success that these positions entail. Salaries typically range from 2000 to 5000 euros, which might seem substantial at first glance.

However, the high social welfare system in Europe breeds a certain mindset. Many people here tend to invest heavily in their children’s extracurricular activities or even engage in risky real estate ventures, believing that these are pathways to financial security. This leads to a common illusion: that if their company is elite, so too must they be.

The Illusion of Wealth and Status

There’s also a frequent assumption that enrolling children in horse riding, skiing, and golf positions them within elite social circles. When discussing financial gain, conversations often begin in the millions, filled with dreams yet lacking concrete plans.

It’s a cycle of frugality, often born from the pressure of servicing numerous leveraged property investments, creating significant cash flow burdens. While the rental-to-sale ratio in Europe may appear favorable, extensive fees and taxes make it challenging.

The Misconception of Ownership

Many mistakenly believe that owning numerous properties translates to actual cash. The hope of achieving financial freedom through clearing loans in twenty years is common. Unfortunately, I have even observed businesses thrive by exploiting this mindset.

Recognizing the High Cognitive Poor

Within discussions of financial struggles in various counties, there’s a reference to a demographic of “high cognitive poor.” This term truly applies here, as these individuals have successfully leveraged their education into stable jobs. They aren’t necessarily destitute but often feel their income doesn’t align with their aspirations.

The Risks of Delayed Gratification

It’s my belief that pouring money into ventures that yield results only decades later is akin to high-risk investing. If they could channel millions into tangible projects sooner, the wait for results wouldn’t have to be so lengthy.

However, for those who prefer to operate within the confines of conventional thinking and are apprehensive about the discomfort of breaking traditions, wealth may always remain just out of reach.

Conclusion

As we navigate our paths within this dynamic global landscape, recognition and understanding of the “high cognitive poor” phenomenon can lead to a more profound shift in mindset and financial strategy among the Chinese community in Europe. Success requires not only education and good jobs but also a willingness to step outside established norms and pursue innovative opportunities. 🌍💼